UK loses out as tourists switch to Milan and Paris

  • Thousands of foreign tourists are now choosing Milan and Paris over the UK for tax-free shopping
  • France and Italy have seen the most benefit from the UK scrapping the tax-free shopping scheme
  • UK luxury retailers are missing out on wealthy international tourists
  • The loss of tax-free shopping has led to job cuts and reduced luxury spending

Thousands of foreign tourists who previously travelled to the UK for tax-free shopping have switched to Milan and Paris following the loss of the scheme. Research shows that 20% of non-EU tourists who sought tax refunds in the UK in 2019 are now claiming them in EU countries that still offer the scheme. France and Italy have been the biggest beneficiaries of this shift, with over two thirds of these tourists choosing to visit these countries instead. The UK’s luxury retailers have expressed concerns about losing out on wealthy international tourists, and job cuts have already been made in response to the loss of tax-free shopping. Despite this, a review from the Office for Budget Responsibility suggests that the decision to scrap the scheme has had a positive impact on public finances, raising £462m. The impact of this change on the UK’s retail industry remains to be seen.

Factuality Level: 3
Factuality Justification: The article provides relevant information about the impact of the UK’s decision to end tax-free shopping on foreign tourists. However, it lacks depth and context, and it includes some unnecessary details like links to sign up for newsletters, which detract from the main topic. The article also presents some information without proper sourcing or verification, such as the predicted rise in public finances due to ending the tax-free shopping scheme.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of the UK’s decision to end tax-free shopping on foreign tourists. It includes data and figures to support the claims made. However, it lacks in-depth analysis of the long-term implications or potential solutions to mitigate the negative effects on the UK’s luxury retail sector.
Financial Relevance: Yes
Financial Markets Impacted: The article mentions the impact of the loss of the tax-free shopping scheme on luxury retailers in the UK, such as Selfridges, which has resulted in job cuts and reduced luxury spending. It also mentions the financial benefit to France and Italy, as well as Spain, from the increase in tax refunds claimed by foreign tourists.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on the financial impact of the loss of the tax-free shopping scheme on luxury retailers and the shift in tax refunds claimed by foreign tourists. There is no mention of any extreme events.

Reported publicly: www.retailgazette.co.uk